Mineral Exploration

S P R I N G 2 0 1 6 13 project in 2010. This is where perfect timing comes in – in five years, Pretium has conducted an extensive exploration program on Valley of the Kings, com- pleted a feasibility study outlining proven and probable mineral reserves of 6.9 mil- lion ounces of gold, obtained permits and commenced construction. The company is currently targeting a 2017 commercial production date and, if its track record continues, it will be right on time. 3. RED CHRIS This is the first of several deposits on the list whose inclusion is based on the game- changing discovery of deeper mineraliz- ation within the last 35 years. In the case of Red Chris, which was first delineated in the mid- to late-70s by Texasgulf Canada Ltd., the discovery that truly made this deposit came in 2007. Imperial Metals Corp., after much reassessment of previous geological work, decided to test the theory of deeper mineralization – subsequently intersecting 1.01 per cent copper and 1.26 grams per ton gold over 1,024.1 metres. Two years later, another deep hole intersected 647.5 metres grad- ing 1.50 per cent copper and 2.68 grams per ton gold, confirming what had been missed by previous companies. Rumour has it that a visit from former Texasgulf personnel, which coincided with drilling of some of the more spectacular grades at Red Chris, was accompanied by much muttering along the lines of, "I told them we should have drilled deeper!" 4. MOUNT MILLIGAN The discovery of this deposit is a series of "might-not-have-beens" that were somehow all resolved. From mis-located claims and soil anomalies on maps to porcupine-munched core stacks, the initial early-1980s exploration of the area by Randy Farmer and Mark Rebagliati with Selco Inc. (a subsidiary of BP) was challenging. Subsequent adjacent stak- ing by Richard Haslinger Sr. and much negotiation over pots of bonfire coffee led to an amalgamation of claims just in time for the project to be shelved by BP. Rebagliati went out to raise money for the project and finally found funding from Lincoln Resources. The first round of subsequent trenching and drilling did not result in a positive engineering report, but Rebagliati was sure there was something there and convinced Lincoln to fund another round of drilling. After hints of good results and a few lost holes, the final hole of the program hit, inter- secting 1.64 grams per ton gold and 0.41 per cent copper over a 140-metre length. Those results attracted the interest of Bob Dickinson, a deal was cut, and it was full steam ahead with a further 720 drill holes. Rob Pease brought the prop- erty into development with Terrane Metals, and Mount Milligan was even- tually taken over by its 10th company, Thompson Creek Metals, which pro- duced the mine's first copper-gold con- centrate late in 2013 and reached its full production capacity in early 2015. 5. KEMESS The discovery of the Kemess deposits (North, South and East) is another story of determination and serendipity. Kemess North was the focus of inter- mittent exploration through the 1960s and 1970s, but it took the discovery of Kemess South to really drive focus in the area. Kemess South had itself been looked at in the early 1980s, with Anaconda Canada Ltd. and St. Philips Resources Ltd. both running core and reverse-circulation drill programs. However, as is so often the way, a com- bination of circumstances prevented this drilling from intersecting significant mineralization; some holes were drilled on the fringe of the deposit and some holes were cut short above high-grade zones due to freeze-up ending the sea- son. Subsequent work by the Kemess South Joint Venture (Kennecott Canada Exploration Inc./El Condor Resources Ltd.-St. Phillips Resources-Rio Algom Explorations Inc.), including geophys- ics and extensive drilling, culminated in the delineation of the deposit in 1993. Kemess South was subsequently mined, and Kemess North is now the focus of AuRico Metals Inc.'s proposed block cave project, Kemess Underground. Additional drilling by AuRico Metals has also led to the discovery of Kemess East, further highlighting the potential of this copper-gold camp. 6. BLACKWATER This gold deposit was first hinted at through anomalous silver, zinc and lead in a Geological Survey of Canada regional stream sediment survey in 1973. Various geophysical surveys fol- lowed, and the first drilling of any sort took place in 1985. Insufficient results and a low gold price led to an explora- tion hiatus from 1997 to 2004, when Richfield Ventures Corp. and Silver Quest Resources Ltd. re-staked and con- solidated the claims. A series of drill cam- paigns followed, and, in 2009, Richfield Ventures drilled hole BW-59 that inter- sected 329 metres averaging 1.25 grams per ton gold and 3.5 grams per ton silver. This discovery hole led to a joint venture between Silver Quest and Richfield with significant additional drilling, and a buy- out of both companies by New Gold Inc. in 2011. New Gold subsequently com- pleted resource delineation and a feasibil- ity study in 2012 based on 310,000 metres of drilling. This discovery represents an emerging new mining district in a rela- tively underexplored region of British Columbia, earning it a place on this list. 7. HUCKLEBERRY The success story of Huckleberry is one of those that keeps the exploration The Mitchell deposit at KSM, discovered by Seabridge Gold in 2006.

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